Elections 2019: Here’s What Brokerages Made Of The Exit Polls

Indian equities opened higher as exit polls showed Prime Minister Narendra Modi’s coalition returning to power for a second term.Here’s what brokerages have to say on exit polls:CLSAExit polls seem to indicate a much stronger mandate for National Democratic AllianceMore outperformance is ahead for Nifty if exit poll predictions are rightRisk of populism or fiscal worries will declineReviving economic growth may not remain an urgent priority is the downsideValuations and the economic reality will likely cap near-term Nifty up-moves to 12,000 markICICI Bank Ltd., Axis Bank Ltd., HDFC Bank Ltd., Godrej Properties Ltd., Reliance Industries Ltd. and ITC Ltd. top picksMidcaps should be back in favour as mid-cap index price-to-earnings is now at 14 times, a five-year lowGoldman SachsPotential reforms will be in land, labour, privatisation and exportExpect Nifty returns to be largely driven by mid-teen earnings growthSee 12-month Nifty target of 12,500 which is 12 percent upsideSee limited headroom for any significant re-rating on valuationsDecisive mandate enables further progress on structural reformsStock to play: ICICI Bank, HDFC Bank, State Bank of India, L&T, Adani Ports and Container CorpHSBCPast exit polls have had a patchy record, Uttar Pradesh outcome remains uncertainMay see a strong opening on Monday as markets were concerned on a broader coalitionJPMorganA stronger victory for the NDA, beyond 290 seats, could however trigger a more robust response (3-5 percent)Any slippage in the number of seats for the NDA would, we believe, trigger a negative reactionMorgan StanleyExit polls have a mixed record, so the real deal is still May 23 when the actual results will be availableGiven what is priced in, stocks will likely rally on the back of the exit pollsFor the broad market, the chances are further skewed to an upward moveIf the actual results are a fragmented verdict then equities could take a meaningful hitKotakExit polls ahead of pre-poll surveys in terms of seats for the BJP-led NDA coalitionEconomic growth revival will be the biggest objective and obstacle for the next governmentNext government to implement reforms to further improve “ease of doing business” in IndiaUltimate objective of next government would be increasing India’s investment rate and creating jobsNomuraExit polls suggest better-than-expected result for NDA, but near-term growth risks remainRural reflation, infrastructure spending, streamlining of the goods and services tax, direct tax reforms and consolidation of public sector banks likely to be key prioritiesDo not foresee a major reversal of the current (weak) economic conditions in the short-termEnd of political uncertainty and policy continuity would be a medium-term positiveCombined impact of weak global growth and tighter financial conditions due to shadow banking stress are set to moderate growth from 6.6 percent (YoY) in Q4CY18 to 6.2-6.3 percent in H1CY19 with risks tilted to downside.Exit Polls Herald The Return Of Modi And A Market Rally

Elections 2019: Here’s What Brokerages Made Of The Exit Polls

Exit polls have predicted the return of Prime Minister Narendra Modi-led BJP to power.

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Elections 2019: Here’s What Brokerages Made Of The Exit Polls

Exit polls have predicted the return of Prime Minister Narendra Modi-led BJP to power.

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